January 06, 2026
John David Mercer/Imagn Images
Jefferson Health and Thomas Jefferson University have filed a lawsuit against drug manufacturers and pharmacy benefit managers over the cost of insulin, which has risen over 1,000% since the 1990s.
Jefferson Health and Thomas Jefferson University have sued several pharmaceutical companies and pharmacy benefits managers for allegedly inflating the price of insulin to maximize profits.
The lawsuit accuses the drug manufacturers and PBMs of conspiring to raise insulin pricing "far beyond inflation," despite the diabetes medication's low production costs. Jefferson is seeking injunctive relief and damages as an employer of over 58,000 and a health system that provides diabetes medication to patients.
As the complaint details, the three major insulin manufacturers in the United States — Eli Lilly, Novo Nordisk and Sanofi — charged as little as $20 per vial in the 1990s. Since then, pricing on some products has increased over 1,000%. Jefferson claims the drug companies conspired with major PBMs, specifically CVS Caremark, Express Scripts and Optum Rx, in an "insulin pricing scheme" to jack up costs. PBMs act as middlemen between pharmaceutical companies and insurers to set prescription benefits.
Even the insulin price cuts implemented in 2023, the lawsuit argues, were "woefully insufficient." They were limited to select insulin products and still pricier in the U.S. market than in other countries. A one-month supply of Ozempic, per the court documents, was $936 in America in 2023. It was $147 in Canada and $83 in France.
Jefferson's legal action follows a similar lawsuit from the city of Philadelphia, which provides insurance plans. It is part of multinational litigation from over 550 state and local governments, companies and unions over alleged insulin price gouging before the U.S. district court in New Jersey. Jefferson's complaint, despite its focus on impacts to Pennsylvania patients, was filed in that court as part of the wider litigation.
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